China: Guidance implementing the R&D “super deduction” | KPMG | GLOBAL
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China: Guidance implementing the R&D “super deduction”

China: Guidance implementing the R&D “super deduction”

The State Administration of Taxation issued guidance for further implementation of the research and development (R&D) expense “super deduction.”


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The notice—Shuizonghan [2016] No. 685 (21 December 2016)—requires each local tax authority to properly implement the R&D super deduction preferential policy during the annual tax filing for 2016. The notice also clarifies that if an enterprise has or is found to have “tax-related problems” in the previous years, the taxpayer’s case must be addressed in a manner not to prevent the enterprise from enjoying the R&D super deduction in 2016. If an enterprise eventually does not qualify for the R&D super deduction preferential policy in a timely manner in 2016, the taxpayer nevertheless may still be eligible for the R&D super deduction retrospectively over the next three years.


Read a February 2017 report prepared by the KPMG member firm in China: Notice of the State Administration of Taxation on Further Implementation of the R&D Expenses Super Deduction Policy

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